Commissioner of Internal Revenue v. Oriental Assurance Corporation
G.R. No. 251677
July 28, 2021
A tax liability may be compromised at any stage of taxation subject to certain rules and exceptions provided in the revenue regulations issued by the BIR.
The taxpayer was assessed for alleged deficiency DST. The CIR issued a Warrant of Garnishment against the taxpayer. The CTA in division and CTA En Banc both ruled that the assessment against the taxpayer is void. Aggrieved, the CIR elevated the case before the Supreme Court but the latter denied the former’s Petition. The CIR then filed a motion for reconsideration.
While the CIR’s motion for reconsideration is pending before the Supreme Court, the taxpayer filed a Manifestation with Motion to Render Judgment Based on Judicial Compromise Agreement requesting the High Court to approve the said agreement executed by both parties.
The Supreme Court found the Judicial Agreement executed by the parties in order. It ruled that a tax liability may be compromised at any stage of taxation subject to certain rules and exceptions provided in the revenue regulations issued by the BIR. The CIR is authorized to compromise, abate, refund or credit taxes. In the absence of any grave abuse of discretion, the authority of the CIR to compromise is purely discretionary and the courts cannot interfere with his exercise of discretionary functions. The Court thus denied the motion for reconsideration for being moot and academic and granted the parties’ Motion to Render Judgment Based on the Judicial Compromise Agreement.
